Low insurance uptake in Africa can be attributed to the low income levels. In 2015, South Africa dominated the non-life insurance industry in Africa while, Morocco had the largest market share of life insurance in the continent.
Major Western insurance firms have more recently begun to especially pay attention to the increasingly attractive sub-Saharan African insurance industry. From 2014 to 2018, Zambia, Nigeria, Ghana, and Uganda recorded some of the highest growth rates within the insurance industry in Sub-Saharan Africa. The growth of the African insurance sector is most especially expected to be facilitated by microinsurance for business and development. Around 27 percent of the lives covered by microinsurance in Africa purchased that coverage through an agent or broker.
Insurers trying to break in Africa are using cheaper distribution channels and mobile phones, mostly for customer service, which represent a promising solution in this regard. As technological changes become one of the key drivers for overall growth in the African insurance industry, mobile phone use is second only to paper use in the premium collection process of microinsurers.